I'm sure some of you out there have some experience regarding loans and credit.

I want to buy my mom a computer, it's going to cost roughly $700.

I've gone to the bank and applied for a $700 loan. They said they don't usually do such small loans, which I know, but he figured the loan guy would go along with it based on my current standings with the bank.

I've got $1500 in a savings account there and average $500 in my checking. So collateral is taken care of.

My question is whether or not a loan is the best choice of financing the purchase. Would applying for a credit card through my bank and using that be a wiser choice?

I'm just not sure I want $700 locked up for the next 8 months. Might as well just pay for it in cash, right?

But if I use a credit card, I'm going to be carrying a balance over 8 months and I don't know if that's a good idea either.

And help?

Your always better off paying cash.

If you really want to pay for it with credit I'd recommend you talking to your bank and comparing the interest to a small personal loan to that of a credit card including any and all fees. Then go with which ever one has the lower cost over the length of payback. The reason I say look at the personal loan is you won't have to worry about a credit limit change or an unexpected raise in interest rates.

As for the computer does she really need the $700 one? Cause if all she needs is internet and MS Office programs a cheap E machine will be fine. I think I saw computer and monitor the other day at Wal-mart for something like $450.

She built a Dell on their website, it's pink.

I was going to build her a pink computer myself but the equipment I wanted to install actually came out more expensive than the Dell.

She would probably be plenty happy with a computer I could get for $300-400 but I want something with grunt to last, and as a back-up for myself if I ever have a cataclysmic hardware failure or something.

Also, because I'm buying it for her because of how much she works from home, I need to buy MS Office, which is $150 on it's own anyway.

EDIT: I actually ducked down from 4GB to 2GB of memory and a slightly slower dual-core. Got it just under $550.

Cash is best... But if you want to do it on credit, do it with a card from your bank, NOT the store you buy from (they will screw you on interest). Don't do it with a loan.

I've had great success in building ym long-term credit rating by using small signature loans. If you're certain that the payments wont hurt ya, I'd say go for it. Bonus points for paying off early.

Ditto on your bank's credit card and with Mike's advice on in-house credit.

check into gettin it financed through dell

Get a friend who goes to a university and get office for cheap. or just torrent it.

I would pay cash or do a loan through dell. If that doesn't work then consider a loan through the bank. Use the credit card as a last resort. Their interest rates are usually VERY high and can change unexpectedly.

As long as it goes through, I'm sticking with the small personal loan.

My co-worker used to finance new cars some years ago. After a long discussion at the bar last night, we figured out what I'm going to do.

Take the loan and use my cash as collateral. For the first 4-6 months pay exactly what I owe exactly when I'm supposed to. After that, go in and try to refinance and have them take the hold off the cash in my account. From there, pay off the rest ASAP.


Going through your own bank is ALWAYS cheaper than going through the provider of the service/product you are purchasing. Dell is asking between 20-30% APR to finance through them. I'm looking at like 14.7% through my bank over 1 year, maybe with a small fee because it's such a small loan.

Good choice.

As to whoever recommended financing through Dell really needs a reality check. That is if not near the top of the most expensive way in the long run. It may be the "easiest" but the interest rates are horrendous.

Many electronics deals I c, you can get 0% interest for at least a year.
May not give you large credit amount, but $700 seems definitely reasonable.

X2. Read the fine print. They will screw you on interest and you will pay WAY more then you need to.

Personal loan or bank credit are the two best choices. Good luck!

why not get the computer on either dell financial or through a credit card and pay it off when you get the first bill. you say you have 500 in checking and 1500 in savings just pay it off then recoup your savings.